Most of us have a long list of things we’d buy if we only had the money to. However, it’s not always easy to save up when we’re amidst the chaos of everyday life. Unexpected expenses set us back, we overspend, and we dip into savings whenever the going gets tough. So how do some people manage to put away a nice little nest egg for a rainy day or find the cash to make their dream purchases? It’s not a case of living like a pauper all month long. You can enjoy a good quality lifestyle and still have money left over at the end of the month. Here’s my top tips on smart saving without dramatic sacrifices.
- Keep in mind why you’d like to save.
Perhaps you’ve had a lavish product in mind for some time, but you’ve never had the expendable cash to get it. Perhaps you have a vague idea of wanting cash stowed away in case of an emergency or an opportunity. Perhaps you’re just sick of your sensible friends always reminding you that it’s important to have some savings in the bank. Whatever your reason, just try to keep it in your mind whenever you’re making cost-cutting decisions. If you remind yourself of your motive, you’ll be motivated and therefore better equipped to go down the right path.
This is the most boring and unappealing part of saving. Setting yourself a budget for each month, or better yet, each week will help you manage your spending better. If you’re spending considerably more than you need to without any logical reasoning, you’ll be better-equipped to track it and resolve it. If you’re not the type of person who fritters away cash on unnecessary items each week, you might be able to save cash in essential areas like food. Shop around. If you have the luxury of being surrounded by multiple supermarkets and local grocery stores, use price comparison websites to find out where the deals on your regular purchases are. Even if you decide to shop in one store, you can save cash by going in with a specific list of what you need to buy. Often people are distracted by multi-buy offers and end up leaving with far more than intended – usually leading to food wastage. Remember than offers are designed to make you spend more money, not save it.
- Switch your bank to a money saving service.
With a new trend in money saving bank accounts like Monzo and Cleo emerging, saving cash directly at the source has never been easier. These services collate your spending habits and even advice you of what you can and can’t afford to do. Some even use a conversational style incorporating emojis and humour into the interface, making saving less daunting.
Most importantly, try to stick with saving. Once you’ve put money away, don’t touch it! Consider that cash out of reach. Consider setting up a savings account that requires a period between requesting to withdraw and receiving your savings. Sometimes a situation seems impossible to tackle without fast cash, a week or two waiting period often reveals that the thing you thought was so essential, isn’t at all really.